AI SummaryLoan Based Schemes for Safai Karamchari - General Term Loan (GTL) is a financial support scheme run by the Ministry of Social Justice and Empowerment through the National Safai Karamcharis Finance and Development Corporation (NSKFDC). It gives affordable term loans to Safai Karamcharis, manual scavengers and their dependents to start income-generating work and sanitation-related activities. Applications are open for 2026 through the official PM Suraj portal and the district offices of channelising agencies.
The loan can cover up to 90% of the unit cost with a maximum project cost of ₹15.00 lacs. Interest is charged at 4.5% per annum from the State Channelising Agency and 9% per annum from the beneficiary. This keeps the borrowing cost low and helps eligible people build a steady income source.
Loan Based Schemes for Safai Karamchari - General Term Loan (GTL) - Overview
General Term Loan (GTL) is a self-employment scheme made for Safai Karamcharis, manual scavengers and their eligible dependents aged 18 years and above. The money can be used for any viable income-generating project, including sanitation-related activities such as transport services, small retail business, piggery, goatery and furniture making. The scheme helps eligible people start a new venture or expand an existing one.
The loan is provided through State Channelising Agencies (SCA), Regional Rural Banks (RRBs) and nationalised banks. These agencies work directly with the target group and make the money available without much hassle. The maximum project cost that can be taken up is ₹15.00 lacs.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Loan Based Schemes for Safai Karamchari - General Term Loan (GTL) |
| Level | Central |
| Nodal Ministry | Ministry of Social Justice and Empowerment |
| Implementing Agency | National Safai Karamcharis Finance and Development Corporation (NSKFDC) |
| Target Beneficiaries | Safai Karamcharis, manual scavengers and their dependents |
| Maximum Project Cost | ₹15.00 lacs |
| Loan Amount | Up to 90% of unit cost |
| Interest Rate | 4.5% p.a. from SCA, 9% p.a. from beneficiary |
| Repayment Period | Up to 10 years |
| Benefit Type | Cash Loan |
| Application Mode | Online and Offline |
Benefits
This scheme helps eligible people by funding up to 90% of the project cost, with a maximum project cost of ₹15.00 lacs. The loan is repayable over a period of up to 10 years. The repayment schedule includes an implementation period of 4 months followed by a moratorium of 6 months from the date of disbursement, depending on how profitable and viable the unit is.
The remaining 10% of the project cost is usually covered by State Channelising Agencies as a loan, subsidy or promoter's contribution. If the project cost is up to ₹2.00 lac, no personal capital is needed from the applicant. For projects costing more than ₹2.00 lac, a minimum promoter's contribution of 5% is required, and the SCA provides another 5%.
Eligibility
Eligible people include Safai Karamcharis (such as waste pickers), identified manual scavengers and their dependents aged 18 years and above. Registered co-operative societies or legally constituted firms promoted by the target group can also apply. Priority is given to manual scavengers whose income is below double the poverty line, women from the target group and disabled persons.
To confirm the status, an occupation certificate from a competent local authority such as a Revenue Officer, Municipal Officer or a Gazetted Officer in a government department is generally needed. If the name is already listed in the final survey done under the MS Act, 2013, a separate certificate is not required.
Application Process
STEP 1 - Visit the official PM Suraj portal at PM Suraj loan application portal and register or log in with the required details.
STEP 2 - Fill in the loan application form with personal details, project details and the required documents, then submit it online.
STEP 3 - Alternatively, visit the district office of the nearest State Channelising Agency, Regional Rural Bank or nationalised bank and submit the manual application form. The list of agencies is available on the official Ministry page at NSKFDC official page.
STEP 4 - After submission, the bank or agency checks the project proposal. Viable projects are sent to NSKFDC along with their recommendations. The Project Appraisal Committee reviews the proposals, and the Board of Directors approves the ones found in order.
STEP 5 - Once approved, a sanction letter is issued. After accepting the terms and signing the loan agreement, the funds are released to the SCA, RRB or nationalised bank for onward payment to the beneficiary.
Documents
Keep the following documents ready when applying:
- Aadhaar Card, which is optional but recommended for identity proof.
- Occupation Certificate issued by a competent authority as mentioned in the eligibility section.
- Bank account details of the applicant for receiving the loan amount.
References
More details about the scheme rules can be found here:
General Term Loan (GTL) scheme details
FAQ's
What is the moratorium period?
The moratorium period is a waiting period after receiving the loan during which no equated monthly installments (EMIs) need to be paid. It is 6 months from the date of disbursement.
Does this scheme give loans to all unorganized workers?
No, this scheme is specifically for Safai Karamcharis, manual scavengers and their dependents.
How does the scheme provide support?
Loans are given through State Channelising Agencies (SCA), Regional Rural Banks (RRBs) and nationalised banks directly to eligible people.
Is there any income limit for the scheme?
There is no fixed income limit for eligibility. However, priority is given to manual scavengers whose income is below double the poverty line, women from the target group and disabled persons.
Which types of projects are covered?
Any viable income-generating project is covered. Common examples include transport services, small retail business, piggery, goatery, furniture making and purchase of sanitation-related equipment.
Am I eligible if I am a domestic worker?
No, domestic workers are not eligible for this specific scheme.
Am I eligible if I am a waste picker?
Yes, waste pickers are part of the target group and can apply for the loan.